Anybody plz tell me that hw cud treat mobile phone for the purpose of Depreciation under Income Tax Act & Also Under Co. Act
Gautam Kr. Singh (student) (30 Points)
02 February 2010Anybody plz tell me that hw cud treat mobile phone for the purpose of Depreciation under Income Tax Act & Also Under Co. Act
Vijay
(CA Final)
(60 Points)
Replied 02 February 2010
CA.Sonia
(professional)
(517 Points)
Replied 02 February 2010
Ya it should treated under office equipment.
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Gautam,
Under Companies Act assets costing upto Rs. 5,000 may charged to profit & loss A/c in the first year
If it exceeds Rs. 5,000 then It should be capitalised under Plant & Machinery - General @ 13.91% (WDV)
Whereas no such facility is available under Income Tax Act - i:e It has o be capitalised - Head "Plan & Machinery - General" @ 15%
Needless to say Cost shall also include cost of "First Recharge Voucher, First Insurance, etc", being an expenditure necessary for making the asset ready for use.
DhiraJ GuptA
(Accountant Internal Audit)
(27 Points)
Replied 14 February 2011
Mobile phones are treated as plant and machinery, and are entitled to depreciation at the rate of 15 per cent.
Ajay Rajai
(Tax Advocate (Consultant) I.T and Documentation of Properties)
(705 Points)
Replied 15 February 2011
Yes, mobile phones are to be treated under the category "plant and machinery" and are entitled for deprciation @ 15% under The Income Tax Act
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